England/EFL: new financial regulations with an 85% Squad Cost Ratio from 2026-27

Sky Bet Championship clubs have voted in favour of the introduction of new financial regulations to come into force from the 2026-27 season, the English Football League announced on 15 May 2026.

The English second division will therefore introduce Squad Cost Rules (SCR), a financial framework replacing the current Profitability and Sustainability Rules (P&S Rules). The change had also been approved by Premier League clubs on 21 November 2025 for implementation from the 2026-27 season.

Under the SCR system, Championship clubs will not be permitted to spend more than an amount equivalent to 85% of their revenue (excluding asset disposals) on player and manager-related costs, including transfer fees. Clubs will also be allowed a flexible equity top-up of up to £33m over a three-year period, capped at £15m per season.

"The new framework allows for real-time monitoring during the season, rather than reviewing ‘after the event’, with the aim of giving clubs greater clarity and the Club Financial Reporting Unit earlier visibility over clubs’ financial position. The framework also includes…